Federal Direct Loan Information

Clarke participates in the Federal Direct student loan program. This program allows students to borrow funds to assist them to meet costs for tuition, fees, room, board and books. To be eligible for a Direct loan, the student must file a Free Application for Federal Student Aid (FAFSA) (www.fafsa.ed.gov) to have a federal need analysis completed. Once the FAFSA results are received, students will be advised of their eligibility for a student loan via their award letter.

Federal Direct Loans

Federal Subsidized Direct Loan

Available to undergraduate students. Eligibility for this need-based loan is determined from the student's FAFSA. The federal government will pay the interest on this loan while the student is enrolled at least half-time. The repayment period begins six months after the student is no longer enrolled at least half-time in a degree-seeking major. This six month grace period begins once the student graduates, withdraws from college, or ceases to be enrolled on a half-time basis.

Federal Unsubsidized Direct Loan

Available to undergraduate and graduate students. This loan is not need-based. The student is responsible for the interest accrued while enrolled. The repayment period begins six months after the student is no longer enrolled at least half-time in a degree-seeking major. This six month grace period begins once the student graduates, withdraws from college, or ceases to be enrolled on a half-time basis.

First time Direct loan borrowers must complete a Master Promissory Note (MPN) and Entrance Counseling to obtain these loans. To complete the MPN and Entrance Counseling visit the following website: www.studentloans.gov. Direct loans will not be processed until the MPN and Entrance Counseling are completed. Clarke will receive a confirmation once the MPN and Entrance Counseling are completed.

ACADEMIC YEAR BORROWING LIMITS

Dependent Students

Credit Level

(time frame)

Subsidized

Amount Limit

Unsubsidized

Amount

Total Annual Maximum

(subsidized + unsubsidized)

Freshman (1-29 credits)

$3,500

$2,000

$5,500

Sophomore (30-59 credits)

$4,500

$2,000

$6,500

Junior/Senior (60+ credits)

$5,500

$2,000

$7,500

Aggregate Borrowing Limit

$31,000 (no more than

$23,000 can be subsidized)

**In the event a student changes grade levels (increases credits) mid-year. The student is advised to contact the Office of Financial Aid to request the additional loan amount.

Independent Students

Credit Level

(time frame)

Subsidized

Amount Limit

Unsubsidized

Amount

Total Annual Maximum

(subsidized + unsubsidized)

Freshman (1-29 credits)

$3,500

$6,000

$9,500

Sophomore (30-59 credits)

$4,500

$6,000

$10,500

Junior/Senior (60+ credits)

$5,500

$7,000

$12,500

Aggregate Borrowing Limit

$57,500 (no more than

$23,000 can be subsidized)

**In the event a student changes grade levels (increases credits) mid-year. The student is advised to contact the Office of Financial Aid to request the additional loan amount.

Graduate Students

Credit Level

(time frame)

Subsidized

Amount Limit

Unsubsidized

Amount

Total Annual Maximum

(subsidized + unsubsidized)

Every Year

n/a

$20,500

$20,500

Aggregate Borrowing Limit

$138,500 (no more than

$65,500 can be subsidized)

Loan Exit CounselingAll students with Federal Direct loans, subsidized or unsubsidized, must complete exit loan counseling when they graduate or leave Clarke. We recommend that this counseling be completed on-line at: www.studentloans.gov. It is important that students understand their rights and responsibilities related to their Direct loans as they leave Clarke.

Debt ManagementIt is important to keep an accurate record of loan money borrowed. Do not borrow more money than you NEED. It is important for students to think about how much they can afford to borrow. Generally, monthly student loan payments should not be more than 15% of the student's gross monthly salary once they leave college. There are three repayment plans to choose from – standard, graduated or income-sensitive. These plans can be reviewed with the student's lender or loan servicer. It is important for students to maintain good communication with their lender or loan servicer. Avoid falling behind on loan repayments or going into default, which will raise serious credit problems!